HOW HELICOPTER MONEY WORKS?

With central banks in the developed world  deploying even more  unconventional monetary easing policy measures – from QE to negative rates in Europe and Japan – the idea of  “helicopter money”  is now being seriously considered by central bankers. But is helicopter money really that different from the tools already employed by central banks? As Toby Nagel from Columbia Threadneedle Investments,  argues in  a recent note, helicopter money is a straightforward and not that different concept  once we understand how money works. To summarise:

http://www.columbiathreadneedle.co.uk/media/10023117/en_viewpoint_the_impact_of_helicopter_money.pdf